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I'm saying I don't understand their open source model. I thought open source meant you could use and modify code and run it yourself without having to pay a license. ie completely independent of the maintainer. So I was confused by this limit of how many were allowed to use something you are running yourself.

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You have it wrong. Neither "open source" nor "free software" imply free-of-cost. Paid software with open and free license is very much a thing.

If you want to drill into the details of the licenses: https://github.com/TabbyML/tabby/blob/main/LICENSE

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